Its often the way, sell into the news, take some profits. this is still a fledgling company in a fledgling field. But I think people are right to be excited. Try and develop a value transfer system utilising the bitcoin blockchain, have it security tested, get an agreement with Telefonica to market it for you, develop a liquidity product in a fledgling asset class.....the company is kicking goals.
When will others see the value? I dont know. I think this announcement will certainly bring some interest. People now know how they will make money in short term (11% comission, airtime top ups), how it will be distributed and their is potential of further partnerships being announced in remittance space....so some investors will come in, but they will be cautious, professionals are not going to take a punt on some press release. But when downloads and revenue are being made, then they can come in with confidence and $.
And this can happen fast (not saying it will). If Telefonica starts an SMS campaign tomorrow to 100m people and it is compeling enough for even a small percentage to take up the offer, suddenly we have a product on thousands or tens of thousands of phones, or maybe more. We will have further revenue.
Downside risk as ever is the take up is low, cash starts running out in a couple of quarters, some tech issues or no new partnerships announced. Just as some positive comments on here are over the top, some of the negative ones are as well (eg customer wont pay 11% fee, from people who have not read one jot of company info). As ever DYOR, at these levels I would say a decent risk reward but that my opinion based on my own research of blockchain, Z , remittance space and DigitalX.
DCC Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
